In many analyses of profit maximization, attention is directed to large herds and specialization in milk production. Why then do some farmers persist in keeping small dairy herds even when prices for Grade B milk become quite low? This article shows that even with relatively low prices for milk...

Prediction in production economics helps individuals and groups to make choices among the uses of resources. Prediction is usually mad by using a sample drawn from a population in which the variables quantities, or parameters to be estimated are already in existence. But in many situations with...